Green Supply Chain Coordination During the COVID-19 Pandemic Based on Consignment Contract

COVID-19 has further strengthened consumers’ online consumption habits and brought a new boom in which enterprises can use online transactions and green products to avoid risk and gain profits in the pandemic. A green supply chain model is established containing one e-commerce platform and one manufacturer. The Nash bargaining contract and Rubinstein bargaining contract are applied to mitigate conflicts of profits in the model. From the coordination analysis, we show that both Nash and Rubinstein bargaining contracts can achieve coordination and mitigate conflict of profits through the adjustment of platform usage rates. According to each member’s bargaining power and patience, the optimal platform usage rate is determined, the supply chain profits of both sides are allocated, the green production’s research and development are promoted, and a win-win situation is realized. Specifically, in the Nash bargaining contract, the excess profit of each member depends on their bargaining power. The stronger the bargaining power, the more excess profits will go to the e-commerce platform, and the less excess profits will go to the manufacturer. In the Rubinstein bargaining contract, the excess profit of each member depends on the lowest profit bound and bargaining patience. The higher the manufacturer’s (or e-commerce platform’s) patience, the higher his profit. When the patience of both is high (or low), the e-commerce platform (or the manufacturer) plays a leading role and obtains more profits.

[1]  Apichit Maneengam,et al.  Asymmetric effects of fine particulate matter and stringency policy on COVID-19 intensity , 2022, International journal of environmental health research.

[2]  Ruozhen Qiu,et al.  Supply chain coordination by contracts considering dynamic reference quality effect under the O2O environment , 2021, Comput. Ind. Eng..

[3]  Hongrui Chu,et al.  Green supply chain coordination with substitutable products under cost sharing contract , 2021, ITQM.

[4]  M. Irfan,et al.  Energy Efficiency in the Post-COVID-19 Era: Exploring the Determinants of Energy-Saving Intentions and Behaviors , 2022, Frontiers in Energy Research.

[5]  Cem Işık,et al.  Interventions for the Current COVID-19 Pandemic: Frontline Workers' Intention to Use Personal Protective Equipment , 2022, Frontiers in Public Health.

[6]  Jintao Ke,et al.  Competition and third-party platform-integration in ride-sourcing markets , 2021, Transportation Research Part B: Methodological.

[7]  Onur Kaya,et al.  An analysis of price, service and commission rate decisions in online sales made through E-commerce platforms , 2021, Comput. Ind. Eng..

[8]  S. Delpachitra,et al.  Does technology gap increase FDI spillovers on productivity growth? Evidence from Chinese outward FDI in Belt and Road host countries , 2021 .

[9]  I. Meilijson,et al.  A consignment contract with revenue sharing between an app developer and a distribution platform , 2021, International Journal of Production Economics.

[10]  Xiang Li,et al.  Strategic introduction of marketplace platform and its impacts on supply chain , 2021, International Journal of Production Economics.

[11]  A. Caparrós,et al.  Inefficient coasean negotiations over emissions and transfers , 2021 .

[12]  Wanich Suksatan,et al.  Asymmetric impact of temperature on COVID-19 spread in India: Evidence from quantile-on-quantile regression approach , 2021, Journal of Thermal Biology.

[13]  Sharon Miller,et al.  Industry 4.0 and circular economy practices: A new era business strategies for environmental sustainability , 2021, Business Strategy and the Environment.

[14]  D. Chandra,et al.  On the vaccine supply chain coordination under subsidy contract. , 2021, Vaccine.

[15]  Yong Yuan,et al.  A novel framework of collaborative early warning for COVID-19 based on blockchain and smart contracts , 2021, Information Sciences.

[16]  Fei Ye,et al.  Competition between manufacturers and sharing economy platforms: An owner base and sharing utility perspective , 2021 .

[17]  Lang Xu,et al.  Platform encroachment with price matching: Introducing a self-constructing online platform into the sea-cargo market , 2021, Comput. Ind. Eng..

[18]  A. Rehman,et al.  Disruption in global supply chain and socio-economic shocks: a lesson from COVID-19 for sustainable production and consumption , 2021, Operations Management Research.

[19]  Production mode and pricing coordination strategy of sustainable products considering consumers’ preference , 2021 .

[20]  S. A. R. Khan,et al.  Disruption in food supply chain and undernourishment challenges: An empirical study in the context of Asian countries , 2021 .

[21]  K. Cai,et al.  Optimising the credit term decisions in a dual-channel supply chain , 2020, Int. J. Prod. Res..

[22]  Haitao Li,et al.  Optimizing carbon taxation target and level: Enterprises, consumers, or both? , 2020 .

[23]  K. Jermsittiparsert,et al.  Asymmetric link between environmental pollution and COVID-19 in the top ten affected states of US: A novel estimations from quantile-on-quantile approach , 2020, Environmental Research.

[24]  Ping He,et al.  Coordination of a supply chain with online platform considering delivery time decision , 2020 .

[25]  Jie Min,et al.  The shelf space and pricing strategies for a retailer-dominated supply chain with consignment based revenue sharing contracts , 2020, Eur. J. Oper. Res..

[26]  J. Nash THE BARGAINING PROBLEM , 1950, Classics in Game Theory.

[27]  Brishti Guha Malice and patience in Rubinstein bargaining , 2019, Research in Economics.

[28]  Chengfu Wang,et al.  Financing online retailers: Bank vs. electronic business platform, equilibrium, and coordinating strategy , 2019, Eur. J. Oper. Res..

[29]  Guiomar Martín-Herrán,et al.  Vendor Management Inventory with consignment contracts and the benefits of cooperative advertising , 2019, Eur. J. Oper. Res..

[30]  B. Hu,et al.  Supply chain coordination under option contracts with joint pricing under price-dependent demand , 2018, International Journal of Production Economics.

[31]  Morteza Rasti-Barzoki,et al.  A game theoretic approach for pricing, greening, and social welfare policies in a supply chain with government intervention , 2018, Journal of Cleaner Production.

[32]  Xu Xian-ha Optimal Policy with Emission Reducing Effort in Multi-Echelon Green Supply Chain under Cap-and-Trade Regulation , 2016 .

[33]  Yael Perlman,et al.  The effect of risk sensitivity on a supply chain of mobile applications under a consignment contract with revenue sharing and quality investment , 2015 .

[34]  Baofeng Huo,et al.  The effect of IT and relationship commitment on supply chain coordination: A contingency and configuration approach , 2015, Inf. Manag..

[35]  Janat Shah,et al.  Supply chain analysis under green sensitive consumer demand and cost sharing contract , 2015 .

[36]  Yongjian Li,et al.  The impact of consumer returns policies on consignment contracts with inventory control , 2014, Eur. J. Oper. Res..

[37]  Ralf W. Seifert,et al.  A three-echelon supply chain with price-only contracts and sub-supply chain coordination , 2012 .

[38]  Elodie Adida,et al.  Consignment contracts with retail competition , 2011, Eur. J. Oper. Res..

[39]  Muhamet Yildiz Nash meets Rubinstein in final-offer arbitration , 2011 .

[40]  Dou Yi-jie,et al.  A game model for green supply chain management based on government subsidies , 2011 .

[41]  Sijie Li,et al.  Supply chain coordination and decision making under consignment contract with revenue sharing , 2009 .

[42]  Luk N. Van Wassenhove,et al.  Closed - Loop Supply Chain Models with Product Remanufacturing , 2004, Manag. Sci..

[43]  E. Damme,et al.  Non-Cooperative Games , 2000 .

[44]  A. Rubinstein Perfect Equilibrium in a Bargaining Model , 1982 .

[45]  Mary C. Brennan,et al.  on the , 1982 .

[46]  J. Nash Two-Person Cooperative Games , 1953 .

[47]  J. Nash Equilibrium Points in N-Person Games. , 1950, Proceedings of the National Academy of Sciences of the United States of America.